Assess the accounting function within the organization in the context of regulatory and ethical constraints.

   Regulatory requirements in accounting

Đang tải lên: Đã tải 621017/621017 byte lên.
Policies and procedures known as accounting standards are employed by businesses to systematize accounting records and accounting operations. An overview of an organization's finances, including its assets, liabilities, and revenues, is included in accounting standards. This information must be accurate and consistent (Kenton,2023). 

The regulatory environment of the accounting industry always ensures the quality and uniformity of the profession. This means that as an accountant, you must comply with ethical, professional, and technical rules. To ensure that accounting practices can be directly compared, it is necessary to rely on accounting standards. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) are the standard requirements that an accountant needs to know and understand (Maclay,2020).


·      Ethical requirements for accountants




- Issues ethical: 

The accounting role contributes significantly to the role of monitoring business activities. They must ensure their business's financial reporting follows clear, recognized standards, and frequently places people in circumstances that may be morally or even legally problematic (Decker,2019).

Prudence: No matter how good professional skills are, mistakes cannot be avoided, so accountants must always pay attention to obtaining accurate figures at every step in all activities (Nguyễn,2023).

 Objectivity: At work, objectivity is essential and is reflected in making decisions that are not influenced by factors outside of relationships (Nguyễn,2023).

 Honestly: Must be honest in all professional and business relationships to act with integrity and in a manner that values ​​ethical standards (Kaike,2021).

Professional competence: Professional capacity: Accountants must always be equipped with the necessary professional knowledge to meet the needs of the organization and customers and comply with regulations on accountants' responsibilities ( Kaike,2021).

-        Ethical constraints

Information about clients must be safeguarded by auditors, who are also prohibited from giving this private information to any other person or entity ( Srivastav, 2022).

It is forbidden for the accountant or auditor to misuse the data that is supplied to the client because numerous rules and guidelines are established by the regulatory bodies that keep an eye on individuals and activities associated with the accounting industry ( Srivastav, 2022).


References: 

Decker, F. (2019) Ethical issues facing the accounting profession , Small Business - Chron.com . Chron.com. Available at: https://smallbusiness.chron.com/ethical-issues-facing- accounting-profession-18307.html (Accessed: October 28, 2023).

Kaike (2021) Chuẩn mực đạo đức nghề nghiệp KẾ Toán, Kiểm Toán, Kaike. Available at: https://kaike.vn/chuan-muc-dao-duc-nghe-nghiep-ke-toan-kiem-toan/ (Accessed: 28 October 2023).

Kenton, W. (2023) Accounting standard definition: How it works, Investopedia. Available at: https://www.investopedia.com/terms/a/accounting-standard.asp#:~:text=Key%20Takeaways,expenses%2C%20and%20shareholders’%20equity. (Accessed: 28 October 2023).

Maclay, K. (2020) Accounting regulation and ethics, Personal Finance Lab. Available at: https://personalfinancelab.com/finance-knowledge/accounting/accounting-regulation-and-ethics/ (Accessed: 28 October 2023).

Nguyễn, H. (2023) Quy Chuẩn đạo đức nghề nghiệp KẾ Toán Hiện Nay, JobsGO Blog. Available at: https://jobsgo.vn/blog/dao-duc-nghe-nghiep-ke-toan/ (Accessed: 28 October 2023).

Srivastav, A.K. (2023) Variance analysis - meaning, types, examples in budgeting - wallstreetmojo. Available at: https://www.wallstreetmojo.com/variance-analysis/ (Accessed: 29 October 2023). 









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